Public performance reports

Financial sustainability and budget transparency

The Council Plan Connect, outlines our outcomes for 2022 to 2027. Connect Outcomes should not be seen in isolation, they interact with each other and as we achieve success in one, we move closer to success in others. In delivering our vision to ‘improve the lives and prospects of everyone in South Lanarkshire’ our outcomes show how our work links with our partners including our Community Planning Partners.

For daily updates, stories, and what’s going on in your area, visit our information and news website South Lanarkshire View.

Each year we produce Annual Performance Spotlights which summarise how we have performed in achieving our Connect Outcomes. To complement these we have created a suite of individual Public Performance Reports that focus on key areas of council business. This report outlines the performance in relation to our financial sustainability and budget transparency and how this links to the outcomes of Connect Value to be ‘accountable, effective, efficient and transparent’.

The information provided below relates to the financial year that we are currently reporting on, 2025/2026. Information on the 2026/2027 budget will follow.

The 2025/2026 Revenue Budget was presented to Council for approval on 26 February 2025.

The report outlined a 3 Year Budget Gap of £37.584 million from 2025/2026 to 2027/2028.

A motion to the report was approved by council Council Budget Motion 2025/2026. This included the following:

Recurring savings proposals totalling £6.485 million for 2025/2026 were approved.
The level of Council Tax approved for 2025/2026 was 6% and generates £9.480 million towards the budget in 2025/2026.
Recurring revenue investments of £3.921 million were approved.
One-off investments of £55.500 million were approved.

The net expenditure budget approved for 2025/2026 totals £1,019.145 million.

The savings exercise is an integral part of the budget-setting process and helps the council to arrive at a balanced budget each year. Resources are asked to identify savings that can be implemented, with minimal impact on service delivery, where possible. The recurring savings proposals totalling £6.485 million included savings arising from efficiencies, charges (both inflationary and non-inflationary), and those with a service impact.

As part of the annual budget setting process, the council undertakes a public consultation exercise involving representatives from the People's Panel and specific interest groups like the Employee Network, Trade Unions, South Lanarkshire Youth Council, Seniors Together, the South Lanarkshire Disability Partnership and Access Panel and Lanarkshire Ethnic Minority Action Group. Online consultation for all members of the public is also carried out and publicised widely using social media. The focus of the consultation changes each year depending on the savings proposed and the budget priorities. The results from the public consultation events are advised to all elected Members. The public is also asked for their views on the budget proposals by emailing savings@southlanarkshie.gov.uk.

The 2025/2026 Capital Programme was approved at council on 26 February 2025.

The approved Capital Programme for 2025/2026 totals £60.216 million.

The Long-Term Capital Investment Strategy will be reviewed during 2025/2026.

The council’s Reserves Strategy was reported to Finance and Corporate Resources on 10 September 2025.

The table below shows a summary of the reserves position at the end of the financial year 2024/2025.

Reserves Analysis	£m
Total Usable Reserves	147.568
Less:	-
General Fund (earmarked/committed including budget strategies)	-105.956
Repairs and Renewals	-5.122
Insurance Fund	-1.812
Capital Funds	-11.195
Housing Revenue Account	-10.440
Total Earmarked/Committed Usable Reserves	134.525
Uncommitted General Fund	13.043

The report outlines the planned use of reserves across the coming years. The main movements reflect the use of reserves in the council's Revenue Budget Strategy.

All reserves are committed, except the UnearmarkedUuncommitted General Fund Balance of £13.043 million.

The council’s Financial Resilience and Sustainability was reported to the Risk and Audit Scrutiny Committee on 30 September 2025.

This report demonstrates the council’s financial resilience by explaining its detailed financial planning, its level of reserves and its key financial strengths in terms of its balance sheet position. Any risks identified through horizon scanning are mitigated where appropriate through the Budget Strategy, a key part of the council’s financial resilience framework.

As demand for services is increasing and cost pressures are rising, local authorities are feeling the financial pressure which is impacting budgets. Local authorities are also facing higher levels of scrutiny over their decision-making, with Audit Scotland stating that “although no council is currently using reserves which risk their financial resilience, they would continue to have an interest in how councils set their reserves policies and utilise those reserves as funding pressures continue in the coming years.” Creating a common set of financial sustainability measures that are comparable across all Scottish local authorities, will support robust discussions around financial decision-making, on the robustness of budgets.

Total useable reserves as a percentage of council annual budgeted revenue

What this means

This indicator is calculated as the ratio of total usable reserves to council’s annual budgeted revenue.

Why this matters

This measure has been incorporated to provide an indication on the level of how a council is placed to meet unforeseen events. A low level of unallocated reserves may be a sign that a council could struggle if any unknown financial surprises were to occur.

Our performance and how we compare

Comparator	2022-23	2023-24	2024-25	Are we improving?
SLC	22.0%	19.6%	14.5%	No
Scotland	24.5%	23.9%	19.3%	No

How we have performed in improving this public service

The council has seen a decrease in useable reserves as a percentage of council budget. This reflects a decrease in the level of useable reserves (significantly as a result of reserves used in the 2024-25 budget to support the council's financial strategy) and an increase in the council’s annual expenditure budget, meaning that arithmetically, the percentage of useable reserves to annual budget decreases. The important factor to consider is the purpose and use of reserves, and the fact is that the council is clear on what reserves we have, and the purpose of them. The use of Service Concession and Superannuation Reserves will affect the figures for the next few years as they are used to support the councill's financial strategy. The key factor is that the reserves are sufficient.

To see how we compare against other councils, links to the data are available in the under 'Benchmarking' on improvement and how we compare.

Percentage of financing costs to net revenue stream - General Fund

What this means

This indicator is one of the prudential indicators currently published by councils during their budget setting process.     

Why this matters

This is an indicator of affordability and highlights the revenue implications of existing and proposed capital expenditure by identifying the proportion of the revenue budget required to meet financing costs, net of investment income.

Our performance and how we compare

Comparator	2022-23	2023-24	2024-25	Are we improving?
SLC	5.0%	3.7%	4.8%	No
Scotland	5.4%	5.8%	6.0%	No

How we have performed in improving this public service

This ratio shows an increase in the General Fund’s ratio of financing costs to net revenue stream. The overall increase in financing costs is mainly due to a change in how we account for the council’s schools PPP project. The position reflects the product of strategic, sustained capital investment in schools and roads over more than twenty years.

To see how we compare against other councils, links to the data are available under 'Benchmarking' on improvement and how we compare.

Percentage of financing costs to net revenue stream – Housing Revenue Account (HRA)

What this means

This indicator is one of the Prudential indicators currently published by councils during their budget setting process.     

Why this matters

This is an indicator of affordability and highlights the revenue implications of existing and proposed capital expenditure for the HRA, by identifying the proportion of the revenue budget required to meet financing costs, net of investment income.

Our performance and how we compare

Comparator	2022-23	2023-24	2024-25	Are we improving?
SLC	17.2%	7.7%	9.3%	No
Scotland	21.3%	20.0%	20.7%	No

How we have performed in improving this public service

This ratio shows an increase in the HRA’s ratio of financing costs to net revenue stream. The overall increase reflects an increase in loan charges from the profiling of repayments as part of the HRA Loans Fund Review. The position reflects the product of strategic, sustained capital investment in the council’s housing stock.

To see how we compare against other councils, links to the data are available under 'Benchmarking' on improvement and how we compare.

Support services as a percentage of total gross expenditure

What this means

This indicator calculates the proportion of total running costs of councils which is spent on support services.

Why this matters

This high-level indicator is important because it provides information on the level of support that is required in each council for front-line services.

Our performance and how we compare

Comparator	2022-23	2023-24	2024-25	Are we improving?
SLC	3.9%	4.1%	3.4%	Yes
Scotland	4.0%	4.1%	4.0%	Yes

How we have performed in improving this public service

There has been a small decrease in the cost of support as a percentage of total budget – this is a combination of a decrease in support costs and an increase in the total budget. These result in an overall minor decrease in the percentage.

To see how we compare against other councils, links to the data are available under 'Benchmarking' on improvement and how we compare.

Financial sustainability looks forward to the medium and long term to consider whether the council is planning effectively to continue to deliver its services or the way in which they should be delivered. As part of their Annual Reports and Accounts our external Auditors prepare an update on how well, or otherwise, the council is complying with this.

The council’s Annual Report and Accounts contain very detailed financial information but also a summary of highlights of the year from the Leader of the council and the Chief Executive Officer. This is audited by our external auditors Audit Scotland and we obtained a ‘clean’ audit certificate. This audit opinion and other judgments on the council’s financial sustainability and management, governance, transparency, and best value are included in the Annual Auditor's Report (AAR).

South Lanarkshire Leisure and Culture Annual Report outlines the work and highlights the financial information for the Leisure Trust which delivers all leisure and cultural activities on behalf of the council.

Resource Plans are prepared each year by all council resources to outline the key developments they intend to take forward in the year. Performance and actions relating to revenues and costs can be found in the following Resource Plans:

Twice a year, performance reports are presented to council committees on progress against the Resource Plans. In addition, reports detailing progress against the Council Plan Connect Outcomes are prepared. See Quarter 2 and Quarter 4 performance reports for further information.

More information on our objectives can be found in the Council Plan Connect and also the Annual Performance Spotlights

Local Government Benchmarking Framework (LGBF) allows councils to work together, to use performance information in a way which will help understand variations, share knowledge, expertise and good practice, with a view to making improvements. For more information and links relating to this framework go to the 'Benchmarking' section on improvement and how we compare.

The information contained in this report reflects the position based on the data available at the time of publication (March 2026).